17 August 2018
Connecting with Millennials does not always come easy to other generations. And it doesn’t help that there are a lot of contradictory opinions and generalizations popping up daily. Millennials are described as both fickle and brand loyal, having short attention spans and laser focus. We’re told in one article that their buying decisions are most influenced by social media and in the next, that they base their buying decisions on peer advice. We’re also told that Millennials aren’t financially stable enough to purchase homes and yet every stat proves otherwise.
In addition to the seemingly contrary information, Millennials have grown accustomed to distancing themselves from traditional processes and channels, and instead attempt to go it alone. In other words, before you convince them that you’re the right Realtor for them, you must convince them they need a Realtor.
With the distinctive challenges, is it worth your time and effort to market to Millennials? According to the experts, the answer is a definitive yes. And here’s why:
- Millennials are choosing the suburbs over urban areas.
- To connect with Millennials, you must have an online presence.
- Millennial women are home buyers.
- Federal Housing Administration (FHA) loans account for 35% of Millennial home purchases.
- Millennials are skipping past the starter homes.
5 Stats that prove Millennials differ from other generations, according to Zillow Research:
- Millennials are the largest group of home buyers at 42%.
- An overwhelming 90% of Millennials perform online research when buying their home.
- Almost 60% of Millennials depend on information, advice and real estate referrals, provided through friends and family.
- Just over ¼ of Millennials are open to purchasing townhomes or duplex/triplex properties.
- Almost 2/3s of Millennials will consider renting as a viable option to buying a home.
5 Common Real Estate Misconceptions About Millennials, according to NAR Homebuyer and Seller Generational Trends Report 2017:
- Millennials do not have money. 37% of homebuyers under the age of 36 have an income between $65k – $129,999k. Their median home purchase price is $205k. Additionally, 89% of Millennials purchase a home with 3 or more bedrooms.
- Millennials are not getting married. Milennials are just as likely as other age demographics to get hitched. Furthermore, just over 50% are likely to have children.
- Millennials are DIYers. Millennials are actually less likely than buyers between the ages of 37 and 61 to purchase a fixer-upper and much more likely to avoid renovations or potential pitfalls, like electrical or plumbing problems.
- Millennials want to live in the city. The average Millennial is almost 60% more likely to choose the suburbs – a higher percentage than any other type of home buyer.
- Millennials are more price-sensitive than other age groups. Millennials are willing to compromise on price, more so than any other age group. And just like Baby Boomers, they are also the not usually willing to compromise on the quality of the community.
Now that we’ve covered some important Millennial Real Estate Stats, let’s turn our focus towards how to market to Millennials.
Top 5 Tips for Real Estate Marketing to Millennials
- Focus on relationships, not on sales. Most millennials are not comfortable jumping into the sales aspect until the middle or end stage of the purchase. Heavy sales jargon or feeling pressure is a giant red flag at any stage of the buying cycle. Most Millennials will need to feel a connection with the potential real estate agent and perform independent research before they are willing to start making decisions. This presents opportunities as well as challenges for real estate agents. To begin with, there will be less foot pounding and door knocking. Alternatively, you will turn to social media marketing and personalized real estate newsletters to provide valuable information while building trust. Encourage them to perform independent research while establishing yourself as their personal information source. Keep in mind that online reviews are second only to peer referrals, so you must stay on top of your online reputation.
- Provide authentic, original and genuine content. Take selfies at the homes you’re listing. If you love independent coffee shops or gelato stands, post “in the moment” thoughts, images, reviews and links. Create Pinterest boards that showcase your interests but also showcase your knowledge that will aide Millennials as they navigate purchasing their home.
- Go visual on social media while showing your personality. Millennials, above all generations, are drawn to visual content on social media. And luckily, as a Realtor, you have a huge advantage above most other professionals. After all, your photo and selfie opps are practically endless. So work on those amateur photography talents. But don’t just stick to taking photos of front doors and closets. Show your personality (see tip number 2). Post photos AND videos of what you love!
- Appeal to (aligned) values. More than any other age group, Millennials tend to align their purchases to people and businesses that share their personal ethics and values. This is among the many reasons why it’s a great idea to actively seek out causes and projects within your geographic farm. Including causes, volunteering and other activities that help others is a smart component to include in your geographic farming system.
- Appeal to Fear of Missing Out (FOMO). Millennial FOMO is a well-known tool utilized by professional marketers. In the last stages of the buying decision cycle – only after you have built a relationship and proven your worth as a Realtor – you can help them make their home buying decision by appealing to FOMO. Do houses in the community that your client is interested in sell quickly? Are you expecting multiple offers? Did Instagram pics of this listing get thousands of likes? Help them make sure they don’t miss out on their dream home.
This concludes our article on Millennial Home Buying Facts and Marketing Tips that Realtors Need to know. We hope you found it helpful!